It is India’s Decade: Globally Leading!
“It is not India’s decade; it is India’s century!”
India is globally leading where the decade started with India taking the G20 presidency. G20: GIST G20 summit is where 19 countries and the EU together are part of it for economic growth and averting financial crisis. It was formed after the 2008 crisis. The main objectives of forming this group of 20 was:
- Sustainable growth Initiatives
- Building sturdy financial architecture
- Financial stability in India
- Economic growth in India
- Financial structure
India in a Sweet Spot
Tech Progress: There are digital success stories that can be highlighted and emphasized to the world about the digital progress and digital transformation initiatives by India in G20 which can truly unite the world going forward.
Bridge Builder and Healer: The tension surrounding the ongoing war where India is in a delicate state in a dilemma to take a stand between war-torn Russia and Ukraine. This would be an opportunity to heal any wounds and build a bridge of trust with compassion. To give the guarantee and assurance that India has the greater good of all the nations at heart which is a key trait of global leadership.
Digital Unity: the progress made on UPI, Fast tags, and Adhar card linkages is noteworthy.
Grassroots Level Challenges in India:
It is not India’s decade; it is India’s century of leadership! That is India will be LEADING for the next 100 years! There is not an iota of doubt in these maxims. However, the bigger question is how will India become the leader of the century. The Indian entrepreneur’s challenges and roadblocks to this scintillating destination are galore.
As per Zillionite, India needs a four-forked
strategy to LEAD the century.
1. Ease of doing Business
For global tie-ups and partnerships, ease of doing business in India is important.
Though India has progressed by leaps and bounds in ease of doing business index rankings in terms of ease of doing business, it has a significant distance as some pertinent key characteristics are still languishing for the business to go sleek and suave.
The World Economic Forum had a protocol to publish rankings on ease of doing business every year. The ranking system has been discontinued from year 2022 citing misinformation and unfair practices in play to arrive at the conclusive rankings.
Source: World Economic Forum
Picture Published in ET
The real challenge is enforcing contracts as the legal support for business growth is without teeth to enforce contracts. The legal enforcement must be really entrenched to conduct business growth strategies in the right and holistic manner.
The minorities are also not protected enough due to the muscle game of the stronger entities and the presence of deep pocket players in the market who tilt the dynamics from being a level playing field for all.
2. Financial Architect
Digitally, India is way ahead of others and is continuously galloping in the right direction. There are still bigger challenges to be addressed in the finance arena. A common prevalent challenge identified needs exigent measures. The elephant in the room is bad debts in business.
The problem of bad debts is entrenched across almost all sectors in India. The varied types of bad debt eruption are:
● Stressed Assets – Bad Debts!
● NPA in banks.
● Loan Shark Deals Consumer Bad Debt
● Debt of Credit Card, Auto Loans, and debt for personal expensformulate es.
Every year banks write off a huge number of bad debt journal entries and there are ARCs to resolve these murky issues which take their own time and there is no guarantee of recovery. The ratio of recovery even by ARCs depends from case to case. In almost all businesses in India, the gestation of credit cycles is elongated.
Additionally, there is 20% to sometimes 40% of bad debts being written off across varied industries. Even the players who can pay the credit decide to play the dirty game to take advantage of the weaker vendor or cite industry norms.
This showcases ethical indecency which is a perennial problem. This ethical dilly-dallies not only percolates at the domestic level but also affects international business trades.
If the reforms and measures for bad debts are not put in place then the Financial Architecture Challenges in India will be akin to walking in a minefield! This will shrink the opportunities for good domestic and international businesses.
A sturdy financial architecture will steer India to LEAD globally. To showcase strong global leadership, finance has to be a strong backbone for India.
3. Share vision of India
The scintillating vision of India is to “Grow Global.” This Vision needs a lot of elements to fall in place and stick like a magnet to show its reverberating impact with sustainability at its core. It must deal with other countries comprehensively, competitively, and collaboratively to lead the century. To ensure that the set vision sees the light of reality, a lot of groundwork must be undertaken by the government across industries at multi-lateral levels.
The aim of India should be that each good company from varied countries should be able to do more business in India with unwavering enthusiasm by simplifying business regulations in India. Security, assurance, principle safety, and easy recovery of money factors should be well taken care of.
India in terms of financial stability must LEAD by example.
This also needs law force and fluidity of legalities to support this vision. Both must work hand in hand to ensure that business growth in India with sturdy financial architecture is supported by swift legal practices. The game changer in achieving India’s global vision is to have roots entrenched in Sturdy Laws.
4. A Battery of Lawyers and a World of Opportunities:
That the world is a global village is an understatement.
However, the legal methodologies vary from country to country. The legalities right from starting the business to winding up the firm are multi-fold. While conducting business as usual the documentation of contracts, agreements, exports, imports, and due diligence is mandatory and time-consuming.
Also, understanding and drafting deals in international trades and businesses which is done by taking into consideration the legalities of two different geographies will play a massive role more than ever.
We need a battery of lawyers in India to support and a robust financial architecture. Legal sharks can help to stand the storm of business cycles and industrial challenges. We need to understand how to leverage a battery of lawyers for international legal matters. Lawyers are also entrepreneurs.
Each lawyer who is having its own practice is also running a business venture. They are on the tough road of entrepreneurship like many in different sectors and domains. The lawyers also face bad debts due to non-payment of dues from the clients. These lawyers understand the problems firsthand as the nature of business is the same irrespective of the industry.
If there are fast-track courts in India that aid and help to access the ease of legalities in terms of cost, availability of legal experts, and agility in terms of decisive outcome, this will be a turnaround point for India, and the world will sit and notice.
The current scenario has financial headwinds to step into legal fights. To file a case against bad debts in Indian Business, the legal fees start from a minimum of 10,000/- INR which can easily stagger up to lakhs. The legal documentation is also exhausting and cumbersome,
to say the least.
With a strong Indian Legal Environment, businesses will be conducted in a more ethical manner proactively to avoid the iron rod. The players will see immense benefits and this will make each element doing business vie for sustainability in a natural, lucid, and organic fashion. Strong laws will make people more ethical which will become second nature for business owners. Ethical business breed is where people will die to pay premiums, and will be queuing up to associate.
Strong Ethics – Strong laws are a dual sword that will work beautifully and cut sharply for those who are off the track in terms of debt repayment. People should be educated about the ethics of debt management.
Even unethical people want to do business with ethical people as they too have a fear of being cheated! A classic case of a snake biting its own tail.
Case Study of Zillionite Client with Global Vision
Mahesh Kamble started his entrepreneurial journey in India when he was just out of college. Back in college, his professor had talked comprehensively about export import business as lucrative with ease of entry in the business.
Nine people from his class after graduation started their own firm in export and import business getting all the documents in place. Mahesh found the easiest business if not ease of business. Despite putting in real effort, he could not get any clients despite several attempts. He along with multiple of his classmates who had started export import business could not solve the challenge of getting business in monetary terms for almost a year.
After almost a year of pursuing his stint, Mahesh connected with Zillionite.
He enrolled in our flagship LDP (Leadership Development Program) and was over the moon for bagging his first-ever client. There was no looking back for Mahesh from there on. The solutions suggested by Zillionite were incorporated by EXMI and it had a very positive impact. Zillionite helped EXMI create a strong Vision and Mission for the company. He was creating waves with global clients and vendor partners, keeping India at heart and creating benefits with world-class quality imports and exports for each.
Zillionite: With the turnaround success story of Mahesh, we felt victorious as our aim to achieve was fulfilled. The aim is to build 0 to 1 for entrepreneurs in their entrepreneurship journey.
Zillionite is a leadership development firm for entrepreneurs of today to become the future leaders of tomorrow.
Zillionite is about empowering and creating an impact.
Ethical
Excellence
Eco System
Educative
Global India or India Global?
Shared Vision: Aim for 1% of bad debts to do business in India. This aligns well with the global Business vision of India to do the same.
Also, it would be great to see India host the 2036 World Cup, Olympics, and much more…with the mindset and vision all set and aligned with LEADING for the century!
Let this be India’s Leading century witnessing India LEAD from the front, from the back, and even from the middle of the pack!
LEAD INDIA!
At Zillionite, we believe in holistic growth and the power of leadership training. Our leadership development program is designed to help you tap into your intuition, develop essential leadership skills, and thrive in any industry ecosystem. Join our business success workshops for startups and entrepreneurs to enhance your negotiation skills and embrace global leadership.
Note: All the views are expressed by Shweta Vora, founder of Zillionite.
References
https://www.sundayguardianlive.com/news/five-reasons-indias-g20-presidency-matters